Mine Plus CANADA’S TOP 40 COMPANIES Are Performing Well

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CANADIAN

MiningJournal

www.canadianminingjournal.com

August 2011

INSIDE

JOB

An in-depth look at building the
Copper Mountain Mine

Plus

CANADA’S

TOP40

COMPANIES

are performing well

CANADIAN

MiningJournal

C O NT E NT S

Departments

5 Editorial

COVER STORY

Calling miners “sissies” (as one ‘consultant’ did) because of peer pressure to act “macho” when it comes to safety is not only ludicrous according to Editor Russ Noble but it’s also something that wouldn’t be tolerated in Canada’s mines thanks to self-governing of the rules by other miners.

13

Canada’s TOP 40

13mining companies

CMJ’s annual “TOP 40” survey takes a look at Canada’s best mining companies and what areas of mining are most profitable.

6 Mining Matters

Canadian Mining Journal’s popular “Mining Matters” pages take a quick look at some of the names and events that are making headlines across Canada and around the world.

18

BC Copper Mine

18 Copper Mountain Mining’s

new project starts producing in record time.

8 Competitive Edge

CMJ’s Foreign Correspondent Jaquelina Jimena talks about “The new CSR frontier” and how important it is to introduce the topic of Corporate Social Responsibility into the universities of the world.

CANADIANS WORKING OUTSIDE CANADA

22

In Alaska

10 In My Mine(d)

22Fire River Gold revives Nixon

This month’s Guest Column has been written by Yusra Siddiquee, a Partner at Norton Rose OR LLP, and entitled “Key Changes to Canada’s Foreign Work Program.”

Fork gold project in remote site.

26

In Mexico

34 Products

26Minfinders Corp. restores

A look at some of the products and services now available to the Canadian mining industry.

interest in historic Dolores gold/silver mine.

38 Exploration Opportunities

A regular column by the firm of PricewaterhouseCoopers looks at Columbia’s mining industry and how it is growing, but not without growing pains.

30

In Nevada

30Silver Predator continues to

invest in desert silver mine.

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ABOUT THE COVER

Copper Mountain Mining’s project in Southern British Columbia has gone from a dream into production in a short period of time thanks to teams of workers that have done some heavy slugging to get the

CANADIAN

MiningJournal

www.canadianminingjournal.com

August 2011

INSIDE

JOB

An in-depth look at building the Copper Mountain Mine

For More Information

Plus

Please visit www.canadianminingjournal.com for regular updates on what's happening with Canadian mining companies and their personnel both here and abroad. A digital version of the magazine is also available at www.digital.canadianminingjournal.com

CANADA’S

TOP40

COMPANIES

are performing well

Canada Post Canadian Publications Mail Sales Product Agreement No. 40069240

plant operational.

Next Month

www.canadianminingjournal.com

Quebec and Atlantic Canada

August 2011• Canadian Mining Journal |

3

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Editorial

CANADIAN

MiningJournal

August 2011 Vol. 132 — No. 6

Mine Safety is for “sissies”

12 Concorde Place, Toronto, ON. M3C 4J2

Tel. (416) 442-5600 Fax (416) 510-5138

www.canadianminingjournal.com

Editor

Russell B. Noble
416 510-6742 [email protected]

By Russell Noble

Field Editor

Marilyn Scales 613 832-9087 [email protected]

ine safety is a topic I could talk about plain wrong. They believe it’s a threat to in almost every issue of the maga- the future of mankind, but as the logical zine. It’s something that I’m familiar rest of us know, that’s ludicrous and

Foreign Correspondent

Jaquelina Jimena [email protected]

M

Northern Correspondent

Bill Braden [email protected]

Western Correspondent

Tanya Laing Gahr
[email protected]

with because unlike most people, I’ve actu- almost as crazy as the headline at the top ally been in mines and know first hand how of this column.

Art Direction

Mark Ryan

  • potentially dangerous they can be.
  • As I just mentioned, there are a num-

Note that I said “can be” instead of say- ber of groups or individuals out there ing “are” because any place that involves devoted to slamming anything associated machines and massive amounts of rock with mining and one of those I came

  • Production Manager
  • Print Production Manager

  • Phyllis Wright
  • Steve Hofmann

Circulation Manager

Cindi Holder

and dirt can be dangerous but quite honestly, I’d rather be a thousand feet down a shaft or hundreds of feet into an open pit than on most of today’s highways. across recently is a ‘consultant’ from Australia who says that mines would be safer places if men weren’t being pressured to show their masculinity and become “macho risk takers.”

416 442-5600, ext. 3544 [email protected]

Publisher

Robert Seagraves
416 510-6891 [email protected]

Sales

Western Canada, Western U.S.A. & Australia

But regardless of the

Ron Sanderson
Specialized Media Associates
403 293-4138

potentials for danger in mines, the truth of the matter is that they are still some of the safer work environments on or more precisely, under, earth.
“Peer pressure (on men at mines sites) ensures safety is only for sissies,” says the consultant. “For most of them, it’s vital to portray themselves as being strong, tough guys. This is a safety issue since they can never show any vulnerability or weakness.”
I don’t know where the consultant did his research but every miner I’ve ever met takes safety as seriously as they do the numbers on their paycheques and the men and women I know who

[email protected]

Group Publisher

Doug Donnelly

President

Bruce Creighton

Vice-president

Alex Papanou

Established 1882

Canadian Mining Journal provides articles and information of practical use to those who work in the technical, administrative and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry. Canadian Mining Journal ISSN 1923 - 3418 (Online) ISSN 0008 - 4492 (Print) is published 10 times a year by BIG Magazines LP, a div. of Glacier BIG Holdings Company Ltd. BIG is located at 12 Concorde Place, Suite 800, Toronto, ON, M3C 4J2.

I know there have been recent headlines talking about mishaps where lives have been lost or equipment failures have resulted in shut downs but again, by comparison to the number of injuries that occur daily in more conventional walks-oflife, mining is still safer.

Phone (416) 442-5600.

Legal deposit: National Library, Ottawa. Printed in Canada. All rights reserved. The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes. All other rights are reserved and commercial use is prohibited. To make use of any of this material you must first obtain the permission of the owner of the copyright. For further information please contact Russell Noble at 416-510-6742.

Subscriptions — Canada: $47.95 per year; $76.95 for two years. USA: US$60.95 per year. Foreign: US$72.95 per year. Single copies: Canada $10; USA and foreign:

US$10. Canadian subscribers must add GST and Provincial tax where necessary.GST registration # 809744071RT001. From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374; Fax: 416-442-2191; E-mail: privacy [email protected]; Mail to: Privacy Officer, Business Information Group, 12 Concorde Place, Suite 800,

Tough and properly equipped but hardly someone you’d call a “sissy.”

And the reason is clear. The majority of work in mines are not stupid enough to mining companies (here in Canada at risk the latter just to be “macho.”

Toronto, ON, M3C 4J2. Publications Mail Agreement #40069240.

Canada Post: Publications Mail Agreement PM40069240. Please forward Forms 29B and 67B to 12 Concorde Place, Suite 800, Toronto, ON M3C 4J2.

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities.

  • least) simply don’t fool around when it
  • In fact, many of the miners I’ve met

comes to safety. Admittedly every once in are slight in stature but tough as nails and a while something goes wrong but there so are many of the men. again, something occasionally goes wrong with almost everything.
In any event, the ‘teams’ that work in our mines are truly self-governing, espe-
Certain groups and individuals, how- cially when it comes to safety, because ever, would have the public think that one ‘jerk-move’ by anyone can spell disasthings go wrong with mining all the time ter for everyone.

  • and they seem bent on convincing almost
  • That’s the reason “sissies” don’t work

anyone who will listen that mining is just in mines.

CMJ

Canadian Business Press Indexed by Canadian Business Periodicals Index

August 2011• Canadian Mining Journal |

5

Magazine appoints Eastern Correspondent

Mining

  • Volume 133
  • August 2011

Matters

Mine rescue team performs well

too along with 10 other teams from
The Diavik mine rescue team will compete western Canada and the northwest in the 10th Biennial National Regional United States. Mine Rescue Competition in Fernie, BC, thanks to its second-place finish in the recent

  • Workers’
  • Safety
  • and

CompensationCommission’s competition in Yellowknife.
Teams competing in
Yellowknife also included Ekati, Snap Lake mines from Northwest Territories, the Meadowbank Mine from Nunavut Territory, and Minto Mine from Yukon Territory.
The rescue team from
Ekati, winners of the Yellowknife competition, will naturally be in Fernie

D’Arcy Jenish

Editor Russ Noble is pleased to announce

the appointment of D’Arcy Jenish as

Canadian Mining Journal’s Eastern Correspondent. D’Arcy, a former Senior Writer at Maclean’s magazine, is the author of seven books and a technical writer with a special interest in mining. He will be responsible for reporting primarily on mining and its people in Quebec and Atlantic Canada. D’Arcy can be reached at [email protected]

The Diavik team included Captain Kelsey Loessi, Vice-captain Kiok Perley, Cody Gagne, Andrew Furlong, James Venera, Yuri Kinakin, Gabino Preciado, and coach Alex Clinton.

Students provide great resource

  • When it comes to hiring students for to look at mining as a career.
  • the organization’s leaders and drawing

  • part-time employment, the Canadian
  • One program that is attracting both from AIESEC’s base of more than 50,000

mining industry is almost second to students and potential mining employ- student members in over 107 countries, none. With a shortfall of 100,000 work- ers alike is AIESEC, the world’s largest, the company recently sent 20 Canadians ers predicted within the next decade, the non-profit, international organization to Brazil to work with the company for a mining industry is concerned about designed to explore and develop leader- period of 12 to 18 months. these prospects and through a number ship potential in students. of programs, it has taken an aggressive Vale, for example, is a partner in the dent resources AIESEC has to offer, position of helping encourage students program and through its interaction with contact www.aiesec.ca
For more information on what stu-

|

6

Meeting strict water codes

BioteQ Environmental Technologies of Vancouver has

just completed its seventh season of water treatment operations at Xstrata Nickel’s Raglan site in the Nunavik Region of northern Quebec.
The ChemSulphide plant treats surface water by applying
ISO 14001 standards for environmental compliance to meet very strict water quality requirements to produce clean water for release to the environment.
It’s anticipated that BioteQ’s plant will treat approximately 1 million cubic meters of water at the Raglan site during the 2011 operating season, depending on the availaibility of water after the snow melt.

Hauling concentrate

CopperMountainMiningCorpispleasedtoannouncethat

the first filtered copper concentrate was recently produced and deposited in the company’s concentrate shed at its new Copper Mountain Mine in southern BC. (See story on Page 18). New 50-tonne super B train-truck units will deliver the concentratetoportwherefacilities(includingatrucktipper) have been built to handle the truck discharging and storage.

More than 1 million cubic meters of water are expected to be treated this year at Xstrata Nickel’s Raglan plant.

August 2011• Canadian Mining Journal |

7

Competitive Edge

Universities:

The New CSR Frontier

Jaquelina Jimena is Canadian Mining Journal’s
Foreign Correspondent. She is a journalist based in South America who specializes in worldwide economic issues and is also an advisor in Corporate Social Responsibility (CSR) in Mendoza, Argentina. She can be reached at [email protected]

By Jaquelina Jimena

“We have the best CSR practices in the sec- that one in three employers struggle to fill their competitive advantage. First, univertor. More than 2,400 small and medium- key jobs. This is happening in Japan (80%), sities should promote a true culture of sized suppliers have been invited to par- India (67%), Brazil (57%), Australia (54%) CSR throughout their organizations. ticipate in our “Value Program”, which and Taiwan (54%). Problems related to hir- Second, they should develop social maraims to promote socially responsible prac- ing the right candidates are common in keting actions in order to better commutices so as to improve their productivity in Canada as well. The survey showed 21% in nicate and interact with stakeholders. The a sustainable manner. In addition, our cor- 2010, and, problems connected with hiring development of a vibrant CSR culture will porate tower was recertified by an the right people rose 8 points, in other foster the build-up of human and social

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  • The Mineral Industry of Canada in 2010

    The Mineral Industry of Canada in 2010

    2010 Minerals Yearbook CANADA U.S. Department of the Interior July 2012 U.S. Geological Survey THE MINERAL INDUSTRY OF CANADA By Philip M. Mobbs Canada is a nation rich in mineral resources. In 2010, disclosure for mineral projects. National Instrument 51–101 sets Canada’s mineral industry continued its recovery from the the standards for disclosure for oil and gas activities. global financial crisis of 2008–9. As one of the major mining Saskatchewan enacted a diamond royalty system in 2010. The countries in the world, Canada leads the world in the production scheme includes a 1% royalty on the value of mine production, of potash (by volume). The country was estimated to rank which begins 5 years after initial production; a stepped royalty second in the production of uranium and was among the top five rate (up to 10%) on profits after capital investment is fully countries in the production of aluminum, cobalt ore, gem-quality recovered; a 100% depreciation rate of capital costs; and a diamond, refined indium, nickel ore, platinum-group metals processing allowance (Government of Saskatchewan, 2010). (PGM) ore, and sulfur (Apodaca, 2011; Bray, 2011; Jasinski, A significant number of international mineral exploration 2011; Kuck, 2011; Loferski, 2011; Olson, 2011; Tolcin, 2011; companies were based in Canada. Canadian companies owned World Nuclear Association, 2011). mining assets that were valued at about $106 billion in 123 countries. In 2010, the proposed Corporate Accountability of Minerals in the National Economy Mining, Oil and Gas Corporations in Developing Countries Act (Bill C-300) was defeated in the House of Commons.
  • MANAGEMENT DISCUSSION and ANALYSIS for the SECOND QUARTER ENDED JUNE 30, 2011 (Expressed in Millions of U.S

    MANAGEMENT DISCUSSION and ANALYSIS for the SECOND QUARTER ENDED JUNE 30, 2011 (Expressed in Millions of U.S

    MANAGEMENT DISCUSSION AND ANALYSIS FOR THE SECOND QUARTER ENDED JUNE 30, 2011 (Expressed in millions of U.S. dollars, except where indicated) Three months ended June 30 Six months ended June 30 2011 2010 Change 2011 2010 Change FINANCIAL HIGHLIGHTS Revenues 298 169 76% 567 367 55% Income from mining operations 64 32 101% 125 114 10% EBITDA (1) 109 62 76% 353 145 144% EBITDA per share (basic) 0.57 0.44 29% 1.85 1.21 53% Earnings for the period 64 37 75% 232 92 153% Earnings per share (basic) 0.33 0.26 29% 1.21 0.76 60% Cash 1,028 325 217% 1,028 325 217% Working capital 1,338 637 110% 1,338 637 110% ( 1) The Company‟s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). EBITDA is a non-IFRS measure which is defined as earnings before interest expenses, income taxes, depreciation, amortization and depletion. SECOND QUARTER AND RECENT HIGHLIGHTS: Total revenues increased 76% to $298 million in the quarter compared to $169 million in the same quarter of 2010. Earnings increased 75% to $64 million compared to $37 million in the same quarter of 2010. EBITDA increased 79% to $109 million from $62 million in 2010. Total production for the quarter was 55 million pounds of copper and 27 thousand ounces of total precious metals (TPMs). Cash costs were $2.33 per pound of copper. Sales lagged production by 2 million pounds. The Company completed the private placement of $500 million aggregate principal amount of 7.75% senior notes and ended the quarter with $1.03 billion of cash.
  • North American Nickel Inc. Defines Shallow Targets on Its Post Creek Property, North Range, Sudbury Basin, Ontario

    North American Nickel Inc. Defines Shallow Targets on Its Post Creek Property, North Range, Sudbury Basin, Ontario

    NORTH AMERICAN NICKEL INC. 301 – 260 W. Esplanade North Vancouver, B.C. V7M 3G7 Tel: (604) 986-2020 Toll Free: 1-866-816-0118 North American Nickel Inc. defines shallow targets on its Post Creek Property, North Range, Sudbury Basin, Ontario Vancouver, B.C. – June 9, 2011, North American Nickel Inc. (TSXV: “NAN”; OTCbb: “WSCRF”; CUSIP: 65704T 108). Introduction The Post Creek property is North American Nickel’s flagship property in Sudbury, Ontario and consists of 35 contiguous unpatented mining claims and one isolated claim for a total area of 688 hectares. It is located along the extension of the Whistle Offset Dyke Structure, a major geological control for Ni-Cu- PGM mineralization in this area of the Sudbury Basin. The claims begin less than 2 km from the producing copper-nickel-platinum group metals Podolsky mine owned by Quadra FNX Mining. The Whistle Offset Structure also hosts the Podolsky North copper-precious metal deposit and is closely associated with Vale’s past-producing Whistle copper-nickel-PGM mine (5.7 million tons grading 0.33% Cu, 0.95% Ni and 3.77 g/t (0.11 ounces per ton) total platinum metals “TPM”). North American Nickel has also optioned the Halcyon claim block which lies adjacent to the north east of Post Creek and is also on trend with the projection of the Whistle Offset Structure. Determining shallow targets for drilling North American Nickel has conducted geophysical and geological surveys on the property since its acquisition in late 2009. The results were compiled and interpreted to form the basis of a qualifying NI 43- 101 report written by Dr.
  • Former Ceo and Chair of Falconbridge, Alex Balogh, Joins North American Nickel’S Advisory Board

    Former Ceo and Chair of Falconbridge, Alex Balogh, Joins North American Nickel’S Advisory Board

    NORTH AMERICAN NICKEL INC. 301 – 260 W. Esplanade North Vancouver, B.C. V7M 3G7 Tel: (604) 986-2020 Toll Free: 1-866-816-0118 FORMER CEO AND CHAIR OF FALCONBRIDGE, ALEX BALOGH, JOINS NORTH AMERICAN NICKEL’S ADVISORY BOARD Vancouver, B.C. – March 12, 2013 North American Nickel Inc. (TSX VENTURE: NAN) (OTCBB: WSCRF) (CUSIP: 65704T 108) North American Nickel ("NAN") is pleased to announce that Mr. Alex Balogh has joined the Company’s Advisory Board. Mr. Balogh is the former Chairman and CEO of Falconbridge Ltd., Deputy Chairman of Noranda Inc. and CEO of Noranda Minerals Inc. He has served as Chairman, International Council on Metals and the Environment (ICME), Chairman, Council of Mining and Metallurgical Institutes, Director, Mining Association of Canada, and as a member of other not for profit national and international organizations. Mr. Balogh also sits on The Sentient Council, an advisory body to The Sentient Group, and is a current member of the Advisory Board of Hatch Associates. Mr. Balogh has at various times sat on the Board of Directors of fifteen listed companies. Rick Mark, CEO of North American Nickel states: “The Company is honoured that Alex has consented to help guide us at this exciting juncture in NAN’s history. As we plan for success in 2013 at our 100% owned nickel-copper-cobalt-PGM sulphide Maniitsoq project in southwest Greenland, his years of world- wide mining experience will assist us in all aspects of developing a new Nickel camp”. Mr. Balogh is a metallurgical engineer and has more than 40 years of experience in the mining and metallurgical industry.